Yum! Brands serves up lump sums to some former employees
By Rob Kozlowski | October 9, 2012 5:48 pm
Yum! Brands Inc., Louisville, Ky., on Tuesday announced it will offer a lump-sum payout to “certain former employees” participating in its U.S. defined benefit pension plans, according to an 8-K filing with the SEC.
The offer is part of the company's “effort to reduce our ongoing volatility and administration expense,” according to the filing.
The company expects to record a pretax non-cash charge of $25 million to $75 million before the end of 2012, the exact amount of which depends on the number of participants accepting the offer.
As of Dec. 31, the U.S. defined benefit plans had a fair value of plan assets of $998 million with projected benefit obligations of $1.381 billion, for a funding ratio of 72.3%.
Yum! Brands spokeswoman Amy Sherwood was not immediately available for comment.